VAT (Academies)

Academies have a special VAT regime which essentially allows them to recover the VAT that relates to their non-business activity of providing free education to their pupils which is funded by the Education Funding Agency. However, many academies have a range of other activities and so need to consider whether VAT registration may be required if these taxable business supplies exceed the VAT registration threshold.

It is important for academies to differentiate between VAT incurred on taxable, exempt and non-business activities because VAT incurred on purchases used to make taxable supplies can only be recovered by a VAT registered academy. For those academies that are not VAT registered but reclaim their VAT through the special VAT regime will need to adjust their claims to take account of the proportion of overhead costs which relate to business activities, as well as excluding any costs which relate directly to business activities.

Our team of experts can advise how to deal with the complex situation of reclaiming VAT and, where applicable, charging VAT, as well as smoothing your path in dealing with returns as a matter of routine.

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Change to Whitley Stimpson

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Confirm to your accountant that you wish to move to Whitley Stimpson

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Supply Whitley Stimpson with your existing accountant’s details

Step 3

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